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In 2018, CVS Health Corporation Reported a $6.1 billion charge for the impairment of goodwill in one of its reporting units (segments) in its 10-K
In 2018, CVS Health Corporation Reported a $6.1 billion charge for the impairment of goodwill in one of its reporting units (segments) in its 10-K annual report. Referring to CVS Health's 2018 financial statements and any other information from the the media, address the following:
- CVS Health's Segments serve as its reporting units for assessing goodwill for potential impairments. Which segment suffered a 2018 impairment? Describe the revenue model for this segment.
- What were the underlying business reasons that required CVS Health to record a goodwill impairment in 2018?
- How did CVS Health reflect the 2018 goodwill impairment in its income statement and cash flow statement?
- Describe the goodwill impairment testing steps performed by CVS Health in 2018 and the consequent loss measurement.
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